Senate Republicans beef over political disclosure bill

Updated 10:21 pm, Wednesday, April 17, 2013

AUSTIN— The Texas Legislature is wading into the politically divisive arena of trying to shine a light on dark-money groups pumping hefty donations into political coffers.

The issue is a lightning rod — and the friction was on full display in the Senate on Wednesday when two Republicans went head-to-head over a bill to require certain tax-exempt groups that don't have to disclose donors to start telling the public where their money comes from.

State Sen. Dan Patrick, R-Houston, successfully maneuvered to have a bill requiring disclosure of political contributions by nonprofits registered as 501(c)4s returned to the Senate floor a day after the full chamber passed the measure and sent it to the House.

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Senators routinely have bills “recalled” to clean up technical errors or language. But Patrick said he fought to have the bill bounced to back to the Senate because he goofed by voting in favor of the bill a day earlier — a move fellow senators said was unprecedented.

“You think it's legitimate that anytime someone who wakes up in the morning and says, 'Wow. I voted for a really bad bill. I want to bring it back and have another chance,' you tend to support that?” said the proposal's author, state Sen. Kel Seliger, R-Amarillo.

“It's not because other members who would vote with me woke up and said, 'I made a mistake,'” Patrick responded, noting that he lamented his yea vote from Tuesday. “It's 'Oh my goodness, I didn't clearly read this bill and this bill has significant impact.'”

Senate Bill 346 would require 501(c)4 groups that spend $25,000 or more on politicking to disclose to the public contributors who pony up more than $1,000. Labor unions are exempt.

501(c)4s have become the main target of campaign watchdogs and even the IRS. The U.S. Supreme Court's 2010 ruling in Citizens United vs. the Federal Election Commission allowed for unlimited political spending and opened the door for super PACs.

Both 501(c)4s and super PACs can accept unlimited sums of cash, but super PACs are required to identify donors. As a result, super PACs tend to set up sister outfits in the form of a 501(c)4s to funnel money anonymously to candidates or to fund attack ads.

“I'm interested in why you would want political organizations and organizations that take money for political purposes, why you think the public should not know who they are,” Seliger told Patrick at one point during the debate. “Because, senator, this about nothing else but transparency — who's contributing to an organization, who contributes or participates in the political process.”

Patrick said he believes the provision is too broad and “it would clearly be struck down at a higher court level,” he said, adding he thinks the bill violates the First Amendment.